Meet Yard: The home loan lender for the digital generation

Tara McCabe

20 May 2020

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As a 100% online lender, the ‘yard’ in Yard home loans is more virtual than real. That’s because Yard’s whole MO is to provide home loans for the ‘digital generation.’ 

Founded by finance expert Nathan Gooley, Yard was set up in 2017. The minds behind this online home loan lender are keen to use the latest technology to make pricing simpler and the overall experience more smooth sailing for Aussies.

Founder Nathan Gooley says, “We help people purchase or refinance their property, offer loans for renovations, as well as ground up construction. We also provide bridging loans to those who need to buy before going through the process of selling an existing property.”

What kind of home loans do Yard offer?

Yard offers principal and interest and five-year interest only home loans for refinancers, investors and owner-occupiers. 

With Yard’s home loans, borrowers can opt for either a lower variable interest rate or choose to play it safe with a fixed rate for 1, 2, 3 or 5 years. 

Plus if you’re a first time borrower struggling to save up a 20% deposit for the home of your dreams, you might be interested to hear that with Yard’s home loans you could potentially borrow up to 95% of the value, meaning you might be able to get your foot through the door with a deposit as little as 5%.

Of course with any deposit less than 20% you will have to pay Lenders Mortgage Insurance, that is unless you have a family member who is willing to act as a guarantor for you. 

How do Yard’s variable interest rates compare?

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Yard Variable Home Loan
  • Variable rates start low at 2.66% p.a. (2.69% p.a. comparison rate*)

  • Unlimited, fee free extra repayments

  • Maximum loan amount $5 million

Yard’s lowest variable rate, 2.66% p.a. (2.69% p.a. comparison rate*), is available to customers with an excellent credit rating looking to take out an owner-occupier loan in a metro area.

All other variable interest rates start at a competitive 2.87% p.a. for potential borrowers with at least an average credit score (2.90% p.a. comparison rate*). And if you’re an investor variable rates for principal and interest loans start at 3.02% p.a. (3.05% comparison rate*).

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Some other features Yard’s home loans come with include:

  • • Free extra repayments, this includes unlimited additional repayments for Yard’s Variable Rate Home Loans and additional repayments up to $20,000 per year, for Yard’s Fixed Rate Home Loans.

  • • Free redraw facility: Yard’s Variable Rate Home Loans come with a free redraw facility.

  • • Optional offset account: If you want to reduce the amount of interest you pay, you can opt to open an offset account with Yard’s Variable Rate Home Loan. Just make sure the interest you save each year outweighs the $10 monthly fee that comes with this additional feature.

Can anyone take out a Yard home loan?

As with most online lenders, not just anyone can take out a Yard home loan. Yard is a little more open than some when it comes to borrowing eligibility. For instance, as well as offering loans to Australian citizens and permanent residents, Yard’s virtual doors may also be open to you if you’re not a resident but you do live Down Under, or if you’re a citizen of Aus but you earn income from overseas. 

What sets Yard apart from other home loan lenders?

As part of Yard’s mission to make home loans simpler, the online lender has a handy tool to help potential borrowers figure out what kind of interest rates are available to them. With this tool you can narrow down rates depending on where you live and how good your credit rating is. So, you could potentially save yourself the time it might take to get a quote and then realise that the home loan might or might not be for you.

In that same vein, Yard’s online application form also comes with useful options to help you ‘design your loan’ better. 

Searching for a low variable rate home loan? Why not check out our variable rate home loans comparison page for more options.

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